Service Supply Chain in the Department of Defense: Opportunities and Challenges

Abstract

The DoD’s services acquisition volume has continued to increase in scope and dollars in the past decade. Between FY 1999 to FY 2003, the DoD’s spending on services increased by 66%, and in FY 2003, the DoD spent over $118 billion or approximately 57% of total DoD’s procurement dollars on services (GAO, 2005b). In recent years, the DoD has spent more on services than on supplies, equipment and goods, even considering the high value of weapon systems and large military items (RAND, 2004). These services belong to a very broad set of activities ranging from grounds maintenance to space launch operations. The major categories include professional, administrative, and management support; construction, repair, and maintenance of facilities and equipment; information technology; research and development, and medical care.